acts pertain to a non cancelable lease agreement between Faido Leasing Company and Sheridan Compeny, a lessee lanuary 1, 201 Annual lease payment due at the beginning of each year, beginning with January 1, 2017 Residual value of equipment at end of lease term $137,171 guaranteod by the lessee Expected residual value of equipenent at end of lease term Lease term Ecornomic life of leased equipment Fair valuc of asset at January 1, 2017 Lessor's implicit rate Lessees incremental boerowing rate $54,000 i vears 6 vears $659,000 12% 12% The asset will revert to the lessor at the ond ot the lease tesm. The lessec uses the straight ine amortization for all leased equipment Click here to view the factor table Your arswer is partially correct. Try again. Prepare an amortization s that would be suitable for the lessee for the lease term. (Rourd present value factor calculations to 5 decima places, e.g. 1.25124 and the final answers to 0 decimal places eu. 5 ERIDAN COMP Date Payment Plus GR iability Lease Liability 1/1/20 1/21 1/ 1 /22 17/31/22 90019 Prepare all of the journal entries for the lessee for 2017 and 2018 to record the lease a t titles are automatically greement, the lease payment and all expenses related to this lease. Assume the lessee's annual accounting period ends on December 31. (Crefi places e.o. 5,275. Record journal entries in the order presented in the problem.) indented when anmount is entered. Do not indent manually. I amount ed, select "No Entry" tor the account titles and enter o for the amounts. Round answers to 0 decimal Date Account Titles and Explanation Debit Credit an. 1, 2017 Leased Equipment Lease Liability To record the lease.) Lease Liability Cash (To record first lease payment.) Interest Expense Dec. 31, 2017 Interest Payable (To record interest.) Depreciation Expense To record amortization.) an. 1, 2018 Interest Payable Interest Expense (To reverse the December 31 entry.) Interest Expense ease Liability Cash (To record the second lease payment.) To recor d the second lease payment.) ec. 31, 2018 Interest Expense Interest Payable To record interest.) Depreciation Expense Accumulated Depreciation Capital Leases (To record amortization.) SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO TEX Your answer is incorrect. Try again. Suppose Right-of-use asset Sheridan received a lease incentive of $5,000 from Faldo Leasing to enter the lease. How would the initial measurement of the lease liability and right-of-use asset be affected? What if Sheridan prepaid rent of $5,000 to faldo? Right-of-use asset Click if you would like to Show Work for this question: Open Show Work SHOW LIST OF ACCOUNTS LINK TO TEXT LINK TO 'EXT